Home finance activity slumps in January

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Posted on Thursday, 10 March 2011

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Natural disasters worked to dampen property buying activity in January with new data revealing a plunge in new home loan approvals over the month.

According to data from the Australian Bureau of Statistics, the number of loans granted to build or buy houses and apartments dropped for the first time in seven months in January, falling 4.5 per cent compared to December.

ANZ economist David Cannington said the drop in demand could be largely attributed to the spate of natural disasters experienced earlier this year.

Demand for loans in Queensland plunged 16 per cent as the state’s devastating floods and cyclone Yasi took their toll.